Tom Lee's Bitmine, the largest Ethereum treasury firm, is taking a page out of Michael Saylor's playbook. The company announced it will offer preferred stock carrying a 9.5% dividend, aiming to raise $300 million. The move comes as Bitmine looks to shore up its balance sheet in a market that has been anything but forgiving for crypto-heavy treasuries.
Why preferred stock now
Preferred shares are a hybrid instrument — they pay a fixed dividend before any common stock dividends, and they rank higher in a liquidation. Bitmine's 9.5% yield is eye-catching, especially in an environment where most crypto companies are struggling to access traditional debt markets. The structure is directly inspired by Michael Saylor's Strategy, which has used preferred issuances to raise capital without diluting common equity.
For Bitmine, the math is straightforward. The firm holds a massive Ethereum treasury — it's the biggest in the business — and needs a way to raise cash without selling coins into a potentially unfavorable market. Preferred stock lets it tap institutional investors who want a steady income stream but aren't ready to buy Ether outright.
The structure of the deal
The offering targets $300 million in total. Bitmine hasn't disclosed the exact number of shares or the par value yet, but the 9.5% dividend rate sets a clear cost of capital. Compare that to the interest on a convertible bond or a bank loan — if either were available at reasonable terms for a crypto firm right now. The premium reflects the risk.
Bitmine isn't the first crypto-native firm to go this route. But it's the first major Ethereum treasury firm to do so, which could set a precedent for others holding large ETH positions. The offering is open now, and the company will be watching the uptake closely.
The next few weeks will tell whether institutional appetite matches Bitmine's ambition. If the full $300 million gets raised, it will validate the preferred stock play for crypto treasuries. If it falls short, the 9.5% coupon might need to go higher.
